Can my refund be seized to pay outstanding debts?

Article ID: 59419  

Question
Can my refund be seized to pay outstanding debts?

Answer

Michigan law requires that any money owed to the state and other agencies be deducted from your refund or credit before it is issued.

This includes:

  • Money owed for past-due taxes
  • School loans
  • Child support due the Friend of the Court
  • IRS levy
  • Money due a state agency
  • Court-ordered garnishment
  • Other court orders.

Taxpayers who are married, filing jointly, may receive a computer generated Income Allocation to Non-Obligated Spouse (Form 743) after the return is filed. Completing and filing this form may limit the portion of the refund that can be applied to a liability. If Treasury applies all or part of your refund to any of these debts, you will receive a letter of explanation.


Article Details
Views: 2589 Created on: Jun 15, 2013